Toronto condo sales hit decade low

August condominium sales in the Greater Toronto area were the worst in a decade and are now 46% below the long-term average, says the Building Industry and Land Development Association.

At the same time the tight market for low-rise homes has prices at all-time high for that segment of the market. The gap between the index price for high-rise and low-rise homes is now $222,149 — the highest on record.

RealNet Canada, which compiles the data for BILD, said there were 633 new high-rise homes sold in the GTA still. Even in the low-rise segment of the market they were only 777 sales, counting detached, semi-detached and townhomes.

Sales along low rises were the third lowest in 10 years and 43% below the long-term average. Land shortages were blamed for the weak sales, a statement BILD said is supported by a price index which saw low rises reached a record of $658,938.

“Constrained land supply has severely diminished inventory in the low-rise sector, bringing prices to a considerable increase. Another factor is the rising government fees and charges which, on average, add up to one-fifth of the cost of a new home,” said Bryan Tuckey, chief executive of BILD, in statement.

He said the constrained market for low-rise new homes also affects existing homes. “Affordability continues to be a challenge for everyone looking to buy a ground-related home in the GTA,” said Mr. Tuckey.